Iberia goes really low in 2008

Iberia seems to be in extremely serious trouble with their loss in 2008. Their profit dropped 90,2 % to 32 million euros. From 2007 loss was that 90,2% with their 2007 profit 328 million euros according to ATW Daily news.

With those figures, how any company can survive to brighter days. They have invested loads of money to planes and maintenance, employees, everything. And even when they cut few planes from the fleet, the money came from banks and they want back whats theirs. Total “savings” that comes by cutting fleet and services will be marginal. Debts are not going away, only incoming money goes, and by decreasing costs will affect straight to income. If the company is in a state that it looks, we may soon see something very bad. And not just from Iberia but with many many “smaller” companies, like SAS, Finnair etc.

But when in western world the companies are struggling with economy, there might be a good chance to someone like Russian airlines. They have never been tighten too much with global economy, not in soviet time and definitely not now. Their economy system hasn’t changed that much, they still make the necessarily income from their government. Secretly or not. If our economy goes downwind few years from now, we will see many many Russian airlines in European airfields. As owners.

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